70% of free cash flow: Centamin’s golden reward
Egypt-based gold miner Centamin (CEY) has surprised investors with plans to pay more than twice the amount of money it normally earmarks for dividends.
The miner has a policy to pay out between 15% and 30% of free cash flow as dividends each year to shareholders. Last week it put a smile on investors’ faces by saying it would pay 70% of free cash flow generated in 2016, equal to 15.5c per share. Analysts had only forecast 7c per share for the total dividend.
Sector peer Randgold Resources (RRS) on 6 February announced a 52% hike in its dividend. Investment bank Investec says this marks the start of ‘meaningful increases in shareholder returns’.
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